KLA Corporation Reports Fiscal 2025 Third Quarter Results; Announces an Increase in the Dividend Level to $1.90 Per Share and a $5 billion Increase in Share Repurchase Authorization

Core Insights - KLA Corporation reported strong financial results for Q3 FY 2025, with GAAP net income of $1.09 billion and revenues of $3.06 billion, exceeding guidance expectations [1][9] - The company remains optimistic about demand in the semiconductor manufacturing sector despite global trade uncertainties, highlighting its relevance in AI investments [2][8] - KLA announced a quarterly dividend increase to $1.90 per share and authorized an additional $5 billion for stock repurchases, reflecting confidence in long-term value [6][9] Financial Performance - Total revenues for Q3 FY 2025 were $3,063 million, compared to $3,077 million in Q2 FY 2025 and $2,360 million in Q3 FY 2024 [3] - GAAP net income increased to $1,088 million from $825 million in Q2 FY 2025 and $602 million in Q3 FY 2024 [3] - Non-GAAP net income for Q3 FY 2025 was $1,121 million, with a diluted EPS of $8.41, up from $8.20 in Q2 FY 2025 and $5.26 in Q3 FY 2024 [4] Segment Performance - Semiconductor Process Control segment generated revenues of $2,738,817 thousand in Q3 FY 2025, up from $2,096,005 thousand in Q3 FY 2024 [17] - Specialty Semiconductor Process and PCB and Component Inspection segments also showed growth, contributing $156,500 thousand and $168,552 thousand respectively in Q3 FY 2025 [17] Cash Flow and Capital Returns - Cash flow from operating activities for Q3 FY 2025 was $1.07 billion, with free cash flow of $990 million [9][18] - Capital returns for the quarter totaled $732.5 million, including dividends and stock repurchases [9][18] Guidance for Q4 FY 2025 - KLA expects total revenues for Q4 FY 2025 to be in the range of $3.075 billion +/- $150 million, with GAAP gross margin projected at 61.7% +/- 1.0% [10][19]